Research Article
Equilibrium in the Presence of Many Insider Traders
Reza Habibi*
Issue:
Volume 11, Issue 2, June 2025
Pages:
32-40
Received:
17 July 2025
Accepted:
1 August 2025
Published:
19 August 2025
Abstract: The model has three kinds of traders: an insider, random noise traders, and a market maker. The insider aims to exploit her informational advantage and maximize expected profits while the market maker observes the total order flow and sets prices accordingly. The equilibrium of auction, when there are a noise trader, a insider trader and a price maker is well studied in the literature. However, in practice, there exist more than one insider and noise traders. In this paper, the case of κ insider traders are considered. First, the pure Nash equilibriums are derived and two learning methods namely gradient and partial best response are studied. Then, the effect existence of more than one insider traders in the market on equilibriums and learning methods are considered. Also, mixture equilibriums are derived and corresponding learning method for mixture distributions is derived. Finally, a conclusion is proposed.
Abstract: The model has three kinds of traders: an insider, random noise traders, and a market maker. The insider aims to exploit her informational advantage and maximize expected profits while the market maker observes the total order flow and sets prices accordingly. The equilibrium of auction, when there are a noise trader, a insider trader and a price ma...
Show More
Research Article
A Posteriori Error Estimates and Convergence of Error Indicator by FEM for a Semi-linear Elliptic Source-boundary Control Problem
Chang Il Kim*,
Jong Hyok Kang,
Gi Chol Sok
Issue:
Volume 11, Issue 2, June 2025
Pages:
41-59
Received:
24 January 2025
Accepted:
17 July 2025
Published:
3 September 2025
Abstract: In this paper, we obtain convergence of a posteriori error indicator to 0 when the mesh size h goes to 0 for the finite element approximation of source-boundary control problems governed by a system of semi-linear elliptic equations. We give the upper and lower bound of a posteriori error, and convergency of a posteriori error indicator.
